Tips for getting Pilots Life Insurance
It used to be that buying private pilots life insurance was extremely expensive. However, like so many underwriting advancements, the term life insurance companies have come a long way in underwriting people who participate in aviation. These days, buying private pilots life insurance is very doable, and the companies have a few key criteria that they look for before the will extend their underwriting offer.
What pilots life insurance criteria do companies look for?
Life insurance companies consider the following factors when evaluating private pilots life insurance:
What types of private pilots life insurance ratings could I expect?
When life insurance companies look at the factors above, they could choose to place you in a variety of classes based on your answers. One thing that we should note is that commercial pilots life insurance is usually not going to be rated as a rule of thumb.
Non-Rated Pilots Life Insurance – If you have extensive flying experience, there are companies like Transamerica, John Hancock, and ING, who will possibly give you up to the best possible rating. Of course, you have to qualify for the other health factors, but best class isn’t totally impossible.
Flat Extra Ratings for Pilots Life Insurance – If you do not have as much experience, it is likely that your pilots life insurance will include some sort of flat extra type of rating. A flat extra is an additional dollar amount per thousand dollars of coverage that the company places on top of your ordinary health rating. For example, if you had a million dollar policy (a thousand units of a thousand coverage) with a $2.50 flat extra, you would end up paying an additional $2500 ($2.50 x 1000) on top of the ordinary cost of the life insurance.
Lower Ratings due to flying – Some companies will not impose flat extras, but will simply give you a worse underwriting offer as a result of your flying. For example, you could be in perfect health, but they could still give you standard rates due to your flying activities
Aviation Exclusions for Pilots Life Insurance – One last option that you have if you are a pilot looking for life insurance would be to get an aviation exclusion. In this scenario, you would be given the health rating that you would receive if you were not a private pilot. However, if you were to die as the result of an accident resulting from flight, the life insurance policy would not pay out a death benefit.
As you can see, there are a variety of options that are available to you if you engage in some type of flight. Before you apply, be sure to tell us about your flying activities in as much detail as possible. In doing so, we can match you up with the best company for your rates on your private pilots life insurance!